JD Sports rides out turmoil to post profits at top end of expectations

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JD Sports has reported a fall in first-half profits, which nevertheless came in at the top end of management expectations after a period of upheaval.

JD Sports sign

The sportswear retailer posted pre-tax profits before exceptionals of £383.5m, down from £439.5m in the comparable period, helped by “continued robust performance” in the core UK and Ireland market and profitability in Europe and the US.

Sales at JD Sports, which earlier this year parted company with veteran chief executive Peter Cowgill but yesterday drafted him back in as a consultant, rose to £4.42bn from £3.89bn.

Despite the performance, JD Sports struck a cautious tone on prospects, “given the widespread macroeconomic uncertainty, inflationary pressures and the potential for further disruption to the supply chain with industrial action a continuing risk in many markets”.

However, it still anticipates that headline profit before tax and exceptionals this year will match the record achieved last year.

JD Sports’ new chair Andrew Higginson, who along with chief executive Régis Schultz joined the business following the departure of Cowgill, said: “While this has been a period of transition for the board, it is reassuring that this has not impacted the financial performance of the group, which continues to deliver strong results.

“With this year expected to follow a more normalised trading pattern, this result is at the top end of our expectations for the first half, demonstrating the ongoing resilience of our global proposition and the strength of our consumer engagement.

“This performance is very encouraging as the group has also faced numerous other challenges in the period, including the well-publicised shortage of supply from a number of the international brands and the challenging global macroeconomic situation.”